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Chuan Hup acquiring office units at The Central

CHUAN Hup Holdings is acquiring several office units at The Central at 8 Eu Tong Sen Street for around S$42.01 million.

Its subsidiary, ProVest Holdings, has accepted an option to purchase (OTP) from Riverhub to acquire a whole strata lot spanning 1,239 square metres, within which several office units are located. The four units are individually rented out at different rentals and under different lease terms.

In a filing to the Singapore Exchange on Monday, Chuan Hup said: "The company wishes to enter into the transaction for the purpose of long-term investment. The acquisition provides the group with an opportunity to own a strategically located commercial property, which will enable the group to earn a sustainable and recurring source of rental income."

Savills Valuation And Professional Services estimated the open-market value of the 99-year leasehold property at S$42 million in a report dated Feb 15.

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The deal will be completed 10 weeks from the OTP. Chuan Hup said that the purchase will be funded through a mix of internal resources and borrowings.